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3 years ago

A mutual fund has $2 million in cash and $6 million invested in securities. It currently has 1 million shares outstanding.

Business

1 answer:

Mamont248 [21]3 years ago

5 0

Answer:

a. NAV = 8 per share

b. 250.000 shares

c. 7.95

Explanation:

a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share

b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.

c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.

New NAV = $7,950,000 /1m = $7.95

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Cash Flow Equivalences. Southwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 5 years

vagabundo [1.1K]

Answer:

They must set aside $65,494.95 at the end of year 4.

Explanation:

Giving the following information:

Southwestern Moving and Storage wants to have enough money to purchase a new tractor-trailer in 5 years for $290,000. If the company sets aside $100,000 in year 2 and $75,000 in year 3.

Interest rate= 9%

<u>We will assume that the money gets set aside at the end of each period.</u>

First, we need to calculate the accumulated money of the first two investments using the following formula:

FV= PV*(1+i)^n

Year 2: FV= 100,000*(1.09)^3= 129,503

Year 3: FV= 75,000*(1.09)^2= 89,107.5

Total= $218,610.5

Difference= 290,000 - 218,610.5= 71,389.5

Final value= 71,389.5

We need to find the present value:

PV= FV/(1+i)^n

PV= 71,389.5/(1.09)= 65,494.95

7 0

3 years ago

The market value for each type of expenditure is given for a hypothetical country in the table above. Calculate the gross domest

cestrela7 [59]

Answer: 4,100

Explanation: the equation for calculating GDP is (C+I+G+NX) first you would subtract the exports and imports to get 100, then you add 2,000+1,000+1,000+100 which equals 4,100

4 0

2 years ago

Read 2 more answers

Which of the following statements are correct? Variable service department costs are charged to operating divisions based on the

padilas [110]

Answer:

•Variable service department costs are charged to operating divisions based on the budgeted rate and actual activity.

• Fixed service department costs are based entirely on budgeted data.

Explanation:

Out of the statements in the question, the correct statements are:

Fixed service department costs are based entirely on budgeted data and

Variable service department costs are charged to operating divisions based on the budgeted rate and actual activity.

It should be noted that fixed cost doesn't varies with production level but variable cost varies with production level.

5 0

3 years ago

Repositioning moves a product on the Perceptual Map from its old location to a new one. When does the new location become active

salantis [7]

Answer:

The correct answer is E

Explanation:

Repositioning is defined as the strategy which is when the company changes the status of the brand or product in the market place. And it usually involve the changes to the marketing mix, which involve promotion, product, price and place.

It is done to keep up with the wants and the needs of the customers. So, in this case, the repositioning moves the product on the map from old location to new location. Therefore, the new location will be active, the day when Research and Development (R&D) projects completes.

7 0

3 years ago

Dessert Palaeice specializes in creating and selling unique bakes and ice creams. It introduces a specialty ice cream, served wi

Arte-miy333 [17]

Answer:

C. Accommodation

Explanation:

Accommodation occurs when schema is change in order to accommodate new information. It occurs when a stimulus has major characteristics of an existing category but not all characteristics. In accommodation, our existing schema is changed to accommodate new information. In this case, customers accommodated the changes in taste to the specialty ice cream and sauce taste that Dessert palaeice introduced after being initially apprehensive of the changes.

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3 years ago